Ok, I'll tackle the tc first as it will be shorter:
Take it apart &
clean it! Due to the rust, the belt didn't have a smooth bed for itself (hence the squealing) so it had to create one (hence the smoke & rubber all over the engine). Now that it's done so, it's settled down but has considreably shortened the life of the belt.
Now to the steering: Something... no wait,
everything is wrong! something isn't original:
1. yes, the washers on the stubs shouldn't be there
2. the right (left of pic) steering arm is bent
3. both tierods are bent
4. If they were straight, the tierods won't clear the frame
Now I'll address each point in more detail:
1. My guess is that the wheels are not original &, because whoever replaced them didn't check for offset, the centre hub is farther
out than the original rims, which puts the edge of the rim too close to the steering arm.
Another possibility is that the spindles were changed, which would explain about 3 points...
2. That's an easy fix, simply a matter of heating & resetting to the correct position. I say heating because simple bashing it back into position will leave it vulnerable to bend again. By heating it you're not stressing the metal & it will be more inclined to stay put...
3 & 4. Obviously, there was a reason for this. With the current setup, there's no way the tierods will work correctly if they were straight, they would hit the frame, further reinforcing my belief that the spindles are not original; what to do to solve this problem will need further investigation & discussion
There are one or two other point I haven't mentioned (like the lack of ackermann) because it probably wasn't part of the original design...
Oh, BTW, the steering is
not straight in the first pic, it's a few degrees to the left...
One last thing: Please try to use the edit button as opposed to making multiple posts...